Page 7 - Aruba Today
P. 7
U.S. NEWS A7
Tuesday 8 March 2016
NY official: US Financial Front:
2015 Wall Street
bonuses down 9% Fed Vice Chair sees hints of too-low inflation moving up
amid profit slide
MARTIN CRUTSINGER Federal Reserve Vice Chairman Stanley Fischer listens during a meeting of the Board of Governors
MICHAEL HILL AP Economics Writer of the Federal Reserve System at the Federal Reserve in Washington. Fischer said Monday, March
Associated Press WASHINGTON (AP) — Fed- 7, 2016, that inflation in the U.S. may be starting to tick up from too-low levels, a key condition for
ALBANY, N.Y. (AP) — Av- eral Reserve Vice Chair- further interest rate hikes.
erage Wall Street bonuses man Stanley Fischer said
were down 9 percent last Monday that inflation in (AP Photo/Susan Walsh)
year to $146,200 as indus- the U.S. may be starting to
try profits declined, New tick up from too-low levels, ergy prices and a strong He said the Fed was study- In her speech and a later
York’s comptroller report- a key condition for further dollar, which reduces the ing negative interest rates, interview, Brainard said
ed Monday. interest rate hikes. cost of imports. But he ex- but he doubts that it would she remained concerned
Industry-wide profits de- “We may well at present pects those factors to fade decide to use them. about low inflation. She
creased by 10.5 percent, be seeing the first stirrings soon, enabling inflation to “We would prefer not to go acknowledged the rise
according to the annual of an increase in the in- advance toward the Fed’s there,” Fischer said. “We in January prices, but she
estimate from state Comp- flation rate — something target. “I think when the don’t see any immediate said she wants to see more
troller Thomas DiNapoli. that we would like to hap- dollar stabilizes and oil sta- need for that, but we are data.
The comptroller said rev- pen,” he said in a speech bilizes, we will see inflation certainly watching the situ- “I want to see a pattern,
enues were weak, espe- in Washington. going very close to 2 per- ation.” some persistence,” she said
cially from trading and un- However, another Fed of- cent,” Fischer said in his ap- Inflation by the Fed’s pre- on CNBC. bIn his speech,
derwriting. Profits were at ficial, Lael Brainard, ex- pearance to receive a life- ferred measure has been Fischer expressed deep
their lowest reported level pressed uncertainty about time achievement award running below target for concerns about the slow-
since 2011. whether an improving job from the National Associa- more than four years. It down in U.S. productivity
“This was the third consec- market would be enough tion for BusinessEconomics. had risen just 0.7 percent over the last two decades
utive year of lower profit,” to bolster inflation, given Fischer was also asked over the 12 months end- — a trend that has held
DiNapoli told reporters persistently low oil prices about the possibility that a ing in December. In Janu- down worker pay.
Monday. and a strong dollar. Infla- weak U.S. economy might ary however, this measure Fischer said “there are few
“You do have a very vola- tion has “persistently un- force the Fed to reverse of inflation jumped, rising issues more important for
tile market.” derperformed” relative to course or even introduce 1.3 percent over the past the future of our economy”
Pre-tax profits for the bro- the Fed’s target of annual negative interest rates, like 12 months. Core inflation, than boosting productivity,
ker/dealer operations of price gains of 2 percent, central banks have done in which excludes food and the amount of output per
New York Stock Exchange she said in a separate Europe and Japan. energy, rose 1.7 percent. hour of work. q
member firms declined by speech Monday.
about $1.7 billion to $14.3 The two Fed officials’ views
billion last year. While the underscore how the Fed is
first half of the year was wrestling with a prolonged
strong, the industry report- period of muted price
ed a loss of $177 million in gains and its timetable for
the fourth quarter. It was rate hikes. In December,
the first quarterly loss since the Fed raised its key rate
2011, according to the from record lows.
comptroller. Policymakers did not raise
One bright spot: employ- rates at its January meet-
ment in the securities indus- ing, and officials are ex-
try in New York City grew pected to leave rates un-
by 2.7 percent in 2015, changed when they meet
averaging 172,400 jobs for again on March 15-16.
the year. DiNapoli said that Many analysts don’t ex-
marks the first time since pect another rate hike until
the financial crisis that the June at the earliest.
industry in New York City During a question and an-
has added jobs for two swer session, Fischer noted
years in a row. The industry that prices were being
remains 8 percent smaller dragged by tumbling en-
than before the financial
crisis. US consumer borrowing growth slows in January
“In terms of employment,
the trends at the end of the JOSH BOAK the smallest annual per- accounts for 70 percent year. The private forecaster
year were up,” DiNapoli, a AP Economics Writer centage gain since Febru- of economic activity, is Macroeconomic Advisers
Democrat, said. “Whether WASHINGTON (AP) — U.S. ary 2013. Total borrowing expected to accelerate has projected growth of 2
that trend will continue it’s consumers bumped up was $3.54 trillion. in early 2016. Overall eco- percent, while the Atlanta
too early to tell.” their borrowing in January Borrowing in the revolving nomic growth has been Fed anticipates growth of
The state comptroller re- at the slowest rate pace in category that covers credit tepid even as hiring has 2.2 percent. In its monthly
leases an annual estimate nearly three years, as out- cards slipped $1.1 billion, af- been healthy. The econo- credit report, the Fed does
of bonuses paid to securi- standing revolving debt ter a strong increase in De- my expanded at a sluggish not break down auto loans
ties industry employees in — such as credit cards — cember that corresponded annual rate of 1 percent and student loans in the
New York City. The state slipped from December. with holiday shopping. Bor- in the October-December seasonally adjusted data.
and city budgets rely on The Federal Reserve said rowing in the category that period, after improving at The report excludes bor-
the securities industry and Monday that borrowing covers auto and student a 2 percent clip in the prior rowing that is backed by
lower profits can affect tax rose $10.5 billion in January, loans increased $11.6 bil- quarter. Economists expect real estate such as mort-
revenue.q an annual increase of just lion last month. growth to rebound in the gage loans and home eq-
3.58 percent. That marks Consumer spending, which first three months of this uity loans.q
